American Tire Distributors Holdings Inc. filed two 8-K filings with the U.S. Securities and Exchange Commission on July 2 and July 3 detailing the purchase of four distribution operations in Canada through TriCan Tire Distributors Inc., an indirect wholly-owned subsidiary of American Tire Distributors Holdings Inc.
According to the filings, the combined purchase price is approximately $153 million.
On June 27, 2014, TriCan entered into an Asset Purchase Agreement with Regional Tire Distributors (Edmonton) Inc. and Regional Tire Distributors (Calgary) Inc. to acquire the wholesale distribution business of each operation. Regional Tire Distributors Inc. is a wholesale distributor of tires, tire parts, tire accessories and related equipment.
Additionally, TriCan entered into Asset Purchase Agreements to acquire the wholesale distribution businesses of Trail Tire Distributors Ltd., Extreme Wheel Distributors Ltd. and Kirks Tire Ltd.
Trail Tire is a wholesale distributor of tires, tire parts, tire accessories and related equipment in Canada.
Extreme is a wholesale distributor of wheels and related accessories in Canada.
Kirks Tire is engaged in the wholesale distribution of tires, tire parts, tire accessories and related equipment and the retail sale, distribution and installation of tires, tire parts and tire accessories and the manufacturing and sale of retread tires. Kirks Tire’s retail operations were not acquired by TriCan and will continue to operate under its current ownership.
Individually, ATD will pay $73 million for Kirk’s Tire Ltd., $31.9 million for Regional Tire Distributors (Edmonton) Inc. and $20.7 million for Regional Tire Distributors (Calgary) Inc., and $27.3 million for Trail Tire Distributors Ltd. and Extreme Wheel Distributors Ltd.
ATD will fund the acquisitions borrowings under Tri Can’s existing ABL credit facility, subject to certain post-closing adjustments, including, but not limited to, working capital adjustments.